Shanghai Electric Breaks Ground on Euphrates Project

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Shanghai Electric Breaks Ground on Euphrates Project

China’s Shanghai Electric has officially kicked off a major power project in Iraq, and it could make a real difference for the country’s electricity supply.

The project is called the Euphrates Combined Cycle Expansion, and its goal is simple: upgrade existing power plants so they can produce more electricity without using more fuel. By converting older, simple-cycle units into modern combined-cycle systems, the project will add 625 megawatts of power to Iraq’s national grid.

What makes this upgrade important is efficiency. Shanghai Electric says the plants will become about 50% more efficient, generating an extra 5 billion kilowatt-hours of electricity every year—all without increasing fuel consumption. That means more power, lower costs, and less pollution.

The work will take place in Najaf, Karbala, Babylon, and Al-Qadisiyyah, areas that have long struggled with power shortages. Key equipment has already arrived at the sites, and Chinese and Iraqi teams are now working side by side to move construction forward.

So how does this system work? In simple terms, it reuses heat that would normally be wasted. The hot exhaust from gas turbines is captured and used to produce steam, which then powers another turbine to generate even more electricity. The result is higher output, better efficiency, and cleaner energy—all from the same amount of fuel.

For Iraq, this project represents a practical step toward easing electricity shortages and improving the reliability of the power grid.